Oregon has the sun, the wind and the waves. But does it have the will to lead the way on these and many other sources of clean renewable energy?
That question is now squarely before the Legislature. A bill backed by Gov. Ted Kulongoski to establish a renewable energy standard -- a powerful incentive in law to expand solar, wind, wave, new hydro and other clean-energy sources -- is pending before a closely divided House of Representatives.
Senate Bill 838 would require that 25 percent of Oregon's electric load come from new renewable energy sources by 2025. It is a big, ambitious and complex bill -- the most important environmental and economic proposal now before lawmakers.
We strongly believe it should be approved. Here's why:
A new standard would spur more clean-, green-energy production, reduce carbon emissions and address the climate change that threatens mountain snowpacks, ocean resources and Oregon agriculture. Twenty-three states already have renewable energy standards, including our neighbors, California and Washington. If Oregon fails to join them, it's likely that much of the clean energy produced in this state would be exported.
A renewable standard would help Oregon become a center of new green technologies, creating businesses and jobs. The Oregon Department of Energy estimates that every $100 million invested in renewable energy in Oregon creates 1,250 jobs.
Many existing Oregon companies, especially industries highly sensitive to electricity prices, have understandable concerns about a renewable standard. There is a risk that a poorly designed standard could lead to electricity price increases and damage the competitiveness of Oregon manufacturers.
However, the proposal includes a 4 percent cost cap, meaning utilities would not have to comply with the standard if rate increases would exceed that level. It also includes a fair system for utilities to recover the costs of investing in clean energy, a plan supported by some consumer groups, including the Citizens' Utility Board.
The legislation also has been written to shield small consumer-owned utilities across rural Oregon, which rely on low-cost Bonneville Power Administration hydropower. Utilities that serve less than 1.5 percent of the state load, or 31 of Oregon's 37 consumer-owned utilities, would be allowed to meet a lower standard of 5 percent renewables by 2025.
There may be ways to further resolve concerns about SB 838 without compromising its core elements. But in the end, this Legislature must adopt a strong renewable standard.
On Friday, the Intergovernmental Panel on Climate Change, a panel of the world's top climate scientists, issued a report suggesting that the worst effects of global warming can be prevented if governments act now. The scientists also described a vast potential for renewable energy and said clean energy could amount to 30 percent to 35 percent of the world's total electricity supply by 2030.
That's in line with the Oregon standard. This state has the means and the motivation to become a clean-energy leader. All it needs now is the will.
